Minimum Wage Garment 2024

Indonesia Minimum Wage 2024

As the minimum wage determination approaches, on November 10, 2023, the Minister of Manpower issued Government Regulation Number 51 of 2023 (PP 51/2023) concerning Amendments to Government Regulation Number 36 of 2021 (PP 36/2021) concerning Wage Setting.

Here are the new and important points you need to know regarding the determination of the minimum wage in 2024:

1. PP 51/2023 emphasizes that the minimum wage only applies to workers with less than one year of working experience. However, it adds a new paragraph stating that workers with less than one year of working experience who have specific qualifications may be granted a higher wage than the minimum wage. In the explanation of this paragraph, "specific qualifications" include education, competence, and work experience required to perform the job or position, and other requirements needed by the company (Article 24 paragraph (1a)).

2. Unlike the previous year, PP 51/2023 establishes that the calculation of the Minimum Wage 2024 is done using a formula that considers variables such as economic growth, inflation, and a specific index, namely the variable α (alpha). This variable α is a variable with a range of values from 0.10 to 0.30 determined by the Wage Council. The value of this variable is determined by considering the level of labour absorption, the average or median wage, and other relevant factors to labour conditions.

3. PP 51/2023 does not guarantee an annual increase in the determination of the minimum wage, according to Article 26 paragraph (9). If the minimum wage adjustment value is equal to or less than 0, then the minimum wage set is equal to the current year's minimum wage. In other words, no increase.

4. For the first time, the minimum wage of the National Capital will be determined and announced by the Head of the National Capital Authority after the determination of the relocation of the National Capital.

5. PP 51/2023 adds the authority of the regional wage council, not only related to the minimum wage but also regarding the implementation of wage structure and scale. The provincial wage council is responsible for providing advice and considerations on the application of wage structure and scale in companies at the provincial level, and the district/city wage council is responsible for providing advice and considerations on the application of wage structure and scale in companies at the district/city level.

The following is the list of Provincial and Regency/City Minimum Wage 2024 which are applicable in 38 Provinces across Indonesia:

1. Nanggroe Aceh Darussalam
2. North Sumatera
3. West Sumatera
4. Riau
5. Riau Islands
6. Jambi 
7. South Sumatera
8. Bangka Belitung 
9. Bengkulu
10. Lampung 
11. West Java 
12. DKI Jakarta
13. Banten
14. Central Java
15. DI Yogyakarta
16. East Java
17. Bali 
18. West Nusa Tenggara
19. East Nusa Tenggara
20. West Kalimantan
21. South Kalimantan
22. Central Kalimantan
23. East Kalimantan
24. North Kalimantan
25. Maluku
26. North Maluku
27. Gorontalo
28. North Sulawesi
29. South-east Sulawesi
30. Central Sulawesi
31. South Sulawesi
32. West Sulawesi
33. Papua
34. Central Papua
35. South Papua
36. Papua Pegunungan
37. West Papua
38. Southwest Papua